BILL NUMBER: AB 950	CHAPTERED  09/18/00

	CHAPTER   469
	FILED WITH SECRETARY OF STATE   SEPTEMBER 18, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 16, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	PASSED THE SENATE   AUGUST 23, 2000
	AMENDED IN SENATE   JUNE 26, 2000
	AMENDED IN SENATE   APRIL 3, 2000
	AMENDED IN ASSEMBLY   APRIL 19, 1999

INTRODUCED BY   Assembly Member Thomson
   (Coauthor:  Senator Johannessen)

                        FEBRUARY 25, 1999

   An act to amend Section 33334.27 of the Health and Safety Code,
relating to housing and community development.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 950, Thomson.   Travis Air Force Base Retention Program.
   Existing law authorizes the redevelopment agencies for the County
of Solano and the Cities of Fairfield, Suisun City, and Vacaville to
expend tax increment funds generally designated for low- and
moderate-income housing within territorial limits to develop housing
outside those entities' territorial jurisdictions, subject to
specified conditions, in order to implement the Travis Air Force Base
Retention Program through the formation of a separate joint powers
entity, as specified.  The statute authorizing this use of funds
would be repealed as of January 1, 2001, except as specified.
   This bill would extend the date of the repeal of the statute to
January 1, 2006, except as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 33334.27 of the Health and Safety Code is
amended to read:
   33334.27.  (a) The Legislature finds and declares all of the
following:
   (1) The retention of the Travis Air Force Base within the County
of Solano is crucial to the economic health of its surrounding
region.  If the closure of the Travis Air Force Base is not averted
by using the powers set forth in this section, it will cause serious
economic hardship throughout the State of California of an annual
multibillion dollar expenditure budget, increased unemployment,
deterioration of properties and land use, and undue disruption of the
lives and activities of the people of the area.  This concern is
based in large part on an inadequate supply of affordable housing for
low- and moderate-income persons and families employed by or serving
at the Travis Air Force Base.
   (2) To avoid serious economic hardship and accompanying blight, it
is necessary to enact the act which adds this section, which shall
apply only within the County of Solano and the Cities of Fairfield,
Suisun City, and Vacaville, and which is adopted only for the purpose
of retaining the Travis Air Force Base.  In enacting this act, it is
the policy of the Legislature to assist the County of Solano and the
Cities of Fairfield, Suisun City, and Vacaville in their attempt to
preserve the affected military facilities and installations for their
continued use as the Travis Air Force Base, and to protect and
enhance these vital facilities by, among other things, ensuring an
adequate supply of affordable housing in proximity to the Travis Air
Force Base.
   (3) The cost and availability of land, construction costs,
geophysical and environmental constraints, household incomes, the
market for affordable housing, commuting patterns, and fiscal and
other related factors make it infeasible for a single community
acting alone, limited to its own resources, to provide the entire
supply of affordable housing necessary to ensure the retention of the
Travis Air Force Base.  It is, therefore, necessary and appropriate
that the agencies of the County of Solano and the Cities of
Fairfield, Suisun City, and Vacaville be permitted, under specified
conditions, to pool their resources to retain the Travis Air Force
Base.  It is necessary that those agencies possess the limited
ability to use their tax-increment moneys outside their individual
communities for these limited purposes.
   (b) The agencies for the County of Solano and the Cities of
Fairfield, Suisun City, and Vacaville may create a separate joint
powers agency pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1 of the Government Code, which joint powers
agency shall have, and exercise, powers of an agency within the
territorial jurisdiction of the City of Fairfield, Suisun City, the
City of Vacaville or the unincorporated area of the County of Solano
to provide housing for the retention of the Travis Air Force Base.
Notwithstanding any provision of existing law, the joint powers
agency shall not have the power to levy any tax.  All land use,
planning, and development decisions with regard to real property
within the City of Fairfield, the City of Suisun City, the City of
Vacaville or the unincorporated area of the County of Solano which is
to be developed or redeveloped by the joint powers agency pursuant
to this section shall continue to be under the control and
jurisdiction of the legislative body or planning commission, as
applicable, of the City of Fairfield, the City of Suisun City, the
City of Vacaville, or the unincorporated area of the County of
Solano.
   (c) The powers of the joint powers agency shall be used in
accordance with a "Travis Air Force Base Retention Program" to be
formulated and approved by the joint powers agency consistent with
this section.  The Travis Air Force Base Retention Program shall not
be implemented unless and until the legislative bodies of the County
of Solano and the Cities of Fairfield, Suisun City, and Vacaville
each adopts an ordinance approving the Travis Air Force Base
Retention Program.  The expenditure of tax-increment moneys outside
of the territorial jurisdiction of each agency involved, as
contemplated by that program, as well as the program itself, shall,
upon the adoption of each ordinance, be deemed to be a part of each
redevelopment plan for each redevelopment project generating the
tax-increment moneys to be expended in carrying out the program, as
if each redevelopment plan had been amended to include the program
and those expenditures.  However, in adopting the ordinance, neither
the legislative body nor the agency is required to comply with
Article 12 (commencing with Section 33450) or any other provision of
this part relating to the amendment of redevelopment plans.  The
joint powers agency may amend the Travis Air Force Base Retention
Program from time to time.  The procedure for amending the ordinance
required by this section shall be the same as for adopting the
ordinance under this section.
   (d) As used in this section, "tax-increment moneys" shall mean all
tax-increment moneys allocated to an agency, including, but not
limited to, tax-increment moneys deposited in an agency's Low and
Moderate Income Fund.
   (e) Notwithstanding subdivision (c) of Section 33334.3 or Section
33670, an agency may use tax-increment moneys to develop housing
outside of the territorial jurisdiction of the agency pursuant to
this section and consistent with the provisions of a Travis Air Force
Base Retention Program approved and adopted pursuant to this
section, if each agency involved finds that no other reasonable means
of financing this housing are available in sufficient amount.  The
Legislature finds and declares that the use of tax-increment funds
pursuant to this section shall be conclusively deemed to be a benefit
to the project area in which those funds were generated.
   (f) Each of the following conditions shall be met before an agency
may use tax-increment moneys to develop housing outside its
territorial jurisdiction pursuant to this section or to lend, pay, or
advance these funds to the joint powers agency pursuant to this
section:
   (1) The community in which the agency is located must have met, in
the current or previous housing element cycle, at least 50 percent
of its existing share of the region's affordable housing needs, as
defined in Section 65684 of the Government Code, for very low income
households.
   (2) The community in which the housing will be developed shall be
the City of Fairfield, the City of Suisun City, or the City of
Vacaville.
   (3) The joint powers agency shall enter into a mutually
acceptable, binding agreement with the City of Fairfield, the City of
Suisun City, or the City of Vacaville where the housing will be
developed.  The contract shall specify the terms and conditions under
which the housing will be developed.  The contract shall specify the
responsibilities of the joint powers agency and the City of
Fairfield, the City of Suisun City, or the City of Vacaville.
   (4) The contract shall contain a provision that allows any
taxpayer or resident of the County of Solano and the Cities of
Fairfield, Suisun City, and Vacaville, the Attorney General, or any
other interested person to enforce the terms of the contract.
   (5) (A) Moneys from an agency's Low and Moderate Income Housing
Fund shall be used in the City of Fairfield, the City of Suisun City,
or the City of Vacaville to pay for the costs of developing housing
as permitted by subdivision (e) of Section 33334.2.
   (B) Notwithstanding subparagraph (A), money from a Low and
Moderate Income Housing Fund shall not be used for offsite
improvements.
   (6) (A) The joint powers agency or the City of Fairfield, the City
of Suisun City, or the City of Vacaville shall not spend money from
a Low and Moderate Income Housing Fund in any way which is
inconsistent with the requirements of Section 33334.3.
   (B) Notwithstanding subdivision (e) of Section 33334.3, the joint
powers agency, the City of Fairfield, the City of Suisun City, or the
City of Vacaville or the agency of the City of Fairfield, Suisun
City, the City of Vacaville, or the County of Solano shall not spend
money from a Low and Moderate Income Housing Fund for administrative
costs, salaries, or wages, except for legal, architectural, and
engineering costs and other salaries, wages, and costs directly
related to the planning and execution of the development of the
housing which is authorized by this section.
   (7) Each of the agencies whose Low and Moderate Income Housing
Fund moneys are to be expended pursuant to this section shall be in
compliance with all applicable replacement housing requirements of
this part.
   (8) The maximum aggregate number of dwelling units developed with
moneys transferred to the joint powers agency from the Low and
Moderate Income Housing Funds of its member agencies pursuant to this
section shall be no more than 500 dwelling units.
   (9) No agency shall transfer to the joint powers agency pursuant
to this section an amount more than:
   (A) Fifty percent of the balance of its Low and Moderate Income
Housing Fund moneys reflected in the accounts of the agency on June
30, 1997.
   (B) Fifty percent of the total amount required by Sections 33334.2
and 33334.6 to be set aside by the agency in its Low and Moderate
Income Housing Fund for all redevelopment projects for each fiscal
year commencing with the 1997-98 fiscal year and for each fiscal year
thereafter.
   (10) The County of Solano and the Cities of Fairfield, Suisun
City, and Vacaville shall each have a complete and adequate general
plan, including a housing element that substantially complies with
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code.
   (g) (1) At least 60 days before the date proposed for the approval
of the contract pursuant to subdivision (f), the joint powers agency
shall send the draft contract to the department for its review,
comment, and recommendation.
   (2) Upon receipt of a draft contract, the department shall solicit
public comments from persons and organizations experienced in
affordable housing issues.  After soliciting and considering these
public comments, the department shall review the draft contract for
its consistency with the requirements of this section.  The
department shall report its written findings and its recommendations
to the joint powers agency and the Cities of Fairfield, Suisun City,
and Vacaville, and the County of Solano, within 45 days of receiving
the draft contract.  The department may charge and the joint powers
agency shall pay a fee that shall not exceed the department's
estimated reasonable costs of complying with this section.  The joint
powers agency may pay this fee from Low and Moderate Income Housing
Fund moneys.
   (3) If the department finds that the draft contract is not
consistent with the requirements of this section, the department may
recommend changes to the draft contract to achieve that consistency.
The department shall recommend that the joint powers agency approve
the draft contract, approve the draft contract after making changes,
or not approve the draft contract.
   (4) If the department recommends against the approval of the draft
contract, the joint powers agency shall not approve the contract.
If the department recommends changes to the draft contract before its
approval, the joint powers agency shall not approve the contract
unless it makes the changes recommended by the department.
   (h) The housing units to be built within the City of Fairfield,
the City of Suisun City, or the City of Vacaville with Low and
Moderate Income Housing Fund moneys transferred pursuant to this
section shall be affordable to lower income households or very low
income households, as those terms are defined in Sections 50052.5 and
50053.
   (i) The joint powers agency shall not receive more than an
aggregate total of two million dollars ($2,000,000) from the other
agencies pursuant to this section.
   (j) (1) If any housing occupied by persons or families of very
low, low, or moderate income is destroyed by the development of
housing pursuant to the authority of this section, displaced
residents from the destroyed housing shall be provided with
relocation benefits which result in the additional replacement
housing payment required by Section 7264 of the Government Code,
enabling the person to lease or rent a comparable replacement
dwelling for a period not to exceed 96 months, instead of 48 months
as required by Section 7264 of the Government Code.
   (2) If any housing occupied by persons or families of very low,
low, or moderate income is destroyed by the development of housing
pursuant to the authority of this section, the destroyed housing
shall be replaced with housing of the same or greater size and shall
be affordable in direct proportion to the displaced income groups,
and shall be provided simultaneously with the housing developed
pursuant to the authority of this section.
   (k) In the event the Travis Air Force Base relocates from its
current location prior to the substantial commencement of
construction of the housing authorized to be developed pursuant to
this section, all moneys from the Low and Moderate Income Housing
Funds which have been transferred to the joint powers agency pursuant
to this section shall be returned by the joint powers agency to the
agencies that originally transferred the funds in ratable portion to
the proportion of the transferred funds that were transferred from
each agency.  However, nothing in this subdivision shall require the
joint powers agency to return any funds that have been expended or
committed for the purposes of the joint powers agency or which are
necessary to pay any indebtedness of the joint powers agency.
   (l) The joint powers agency established pursuant to this section
shall require, as a condition precedent to the expenditure of any
tax-increment moneys to carry out the Travis Air Force Base Retention
Program, that the real property on which the housing is developed
pursuant to that program shall be burdened with covenants running
with the land for the period and with the substance required by
Section 33334.3.  The joint powers agency shall also require that
these covenants include a mechanism that shall ensure the continued
availability of the dwelling units for very low or low-income persons
and families for the period required by Section 33334.3 in the event
the Travis Air Force Base relocates or, for any other reason, no
longer uses these housing units, or, in the absence of this continued
availability, implements a procedure that protects the joint powers
agency's investment of moneys from Low and Moderate Income Housing
Funds and provides for the pro rata return of the sales proceeds to
the Low and Moderate Income Housing Funds of those agencies expending
these funds to carry out the Travis Air Force Base Retention
Program.
   (m) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, which is chaptered before January 1,  2006, deletes or
extends that date, or unless tax-increment moneys have, prior to that
date, been received by the joint powers agency, in which case the
date of repeal of this section shall be extended until the time that
the joint powers agency shall expend these funds in accordance with
this section.  This repeal shall not affect any contract or covenant
which shall have been entered into prior to January 1,  2006, to
implement this section, and all contracts and covenants shall
continue after the repeal date in full force and effect in accordance
with their terms.
